9:48am | On August 9, the Department of Parks, Recreation & Marine will ask the city council to execute a $9.97 million loan contract with the state’s Department of Boating and Waterways for Phase 1 of the Alamitos Bay Marina rebuild.
The debt service on the loan — which will be $606,198 annually — will be paid by an increase in slip fees. If the City executes the loan, the increases will hit boat owners in October, ranging from an extra $7.20 for a 20-foot slip to an extra $124.50 for a 120-foot slip. The entire Parks & Rec proposal, including a complete list of slip-fee increases, can be viewed here.
The proposal was submitted by Parks & Rec Director George Chapjian, who tells Long Beach Post that Phase 1 of the Marina Bay Rebuild is the first of five phases, which in total will cost $40–70 million.
“The ABM is approximately 50 years old, and as such has met its natural lifespan,” Chapjian says by way of explaining why the project is necessary. “The wooden docks and piles have deteriorated over the years to the point that it is necessary to replace them. he proper material for replacement at this time is concrete docks. The replacement will include upgrades to the utilities as well.”
The slip-fee increases will cover 1.25 times the debt service. “This formula assures the funding source that there will be adequate revenue to repay the loan — that in a worse case scenario (e.g., we have a high rate of vacant slips that aren’t bringing in revenue) we still have enough revenue to make our loan payments,” Chapjian explains. “The 1.0 doesn’t assure the cushion that the funding sources like to see.”
This matter is slated for discussion at the August 9 city council meeting, which begins at 5 p.m.
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